scholarly journals Strategies of E-Commerce Business Value Optimization

Author(s):  
Ada Scupola

The Internet economy is becoming an integral part of many countries’ economies, creating new jobs, giving rise to new companies like the dot coms and transforming traditional jobs and traditional companies. The Internet is increasingly becoming a part of the basic business model for many companies as organizations around the world are adopting new e-business models, integrated solutions to explore new ways of dealing with customers and business partners, new organizational structures and adaptable business strategies (Singh & Waddell, 2004). There are many definitions of electronic commerce (e.g., Wigand, 1997). Here, a classic definition by Kalakota and Whinston (1996) is adopted, where e-commerce is “the buying and selling of information, products and services via computer networks today and in the future via any one of the myriad of networks that make up the ‘Information Superhighway (I-way)’” (p.1). A distinction between physical and digital products can be made. A digital product is defined as a product whose complete value chain can be implemented with the use of electronic networks; for example, it can be produced and distributed electronically, and be paid for over digital networks. Examples of digital products are software, news, and journal articles. The companies selling these products are usually Internet-based “digital dot coms” such as Yahoo and America Online. On the contrary, a physical product cannot be distributed over electronic networks (e.g., a book, CDs, toys). These products can also be sold on Internet by “physical dot coms”, but they are shipped to the consumers. The corporations using electronic commerce are distinguished into “bricks and mortar” companies, hybrid “clicks and mortar” companies (such as Amazon.com) and pure dot coms (Barua & Mukhopadhyay, 2000).

2011 ◽  
pp. 1195-1202
Author(s):  
Ada Scupola

The Internet economy is becoming an integral part of many countries’ economies, creating new jobs, giving rise to new companies like the dot coms and transforming traditional jobs and traditional companies. The Internet is increasingly becoming a part of the basic business model for many companies as organizations around the world are adopting new e-business models, integrated solutions to explore new ways of dealing with customers and business partners, new organizational structures and adaptable business strategies (Singh & Waddell, 2004). There are many definitions of electronic commerce (e.g., Wigand, 1997). Here, a classic definition by Kalakota and Whinston (1996) is adopted, where e-commerce is “the buying and selling of information, products and services via computer networks today and in the future via any one of the myriad of networks that make up the ‘Information Superhighway (I-way)’” (p.1). A distinction between physical and digital products can be made. A digital product is defined as a product whose complete value chain can be implemented with the use of electronic networks; for example, it can be produced and distributed electronically, and be paid for over digital networks. Examples of digital products are software, news, and journal articles. The companies selling these products are usually Internet-based “digital dot coms” such as Yahoo and America Online. On the contrary, a physical product cannot be distributed over electronic networks (e.g., a book, CDs, toys). These products can also be sold on Internet by “physical dot coms”, but they are shipped to the consumers. The corporations using electronic commerce are distinguished into “bricks and mortar” companies, hybrid “clicks and mortar” companies (such as Amazon.com) and pure dot coms (Barua & Mukhopadhyay, 2000).


Author(s):  
Ada Scupola

The rapid developments of Internet and Web-based applications has shaped the era of the digital economy and changed the way enterprises operate. Internet is increasingly becoming part of the basic business model for many companies as organizations around the world are adopting new e-business models and integrated solutions to explore new ways of dealing with customers and business partners, new organizational structures, and adaptable business strategies (Singh & Waddell, 2004). According to Kalakota and Robinson (1999), e-business is the complex fusion of business processes, enterprise applications, and organizational structure necessary to create a high performance business model. E-business is therefore more than just having an Internet presence or conducting e-commerce transactions, it is a new business design that emphasizes a finely tuned integration of customer needs, technology, and processes (Kalakota et al., 1999). When discussing e-business, it is important to make a distinction between physical and digital products. A digital product is defined as a product whose complete value chain can be implemented with the use of electronic networks, for example it can be produced and distributed electronically, and be paid for over digital networks. Examples of digital products are software, news, and journal articles. The companies selling these products are usually Internet-based “digital dot coms” such as Yahoo and Google. On the contrary, a physical product cannot be distributed over electronic networks (e.g., a book, CDs, toys). These products can also be sold on Internet by “physical dot coms,” but they are shipped to the consumers. The corporations adopting e-business are distinguished into “bricks and mortar” companies, hybrid “clicks and mortar” companies (such as Amazon.com) and pure dot coms (Barua & Mukhopadhyay, 2000a). Many studies from the early days of deployment of information technology (IT) in organizations have struggled to measure the business value and profitability of information technology (Barua et al., 2000a). Many of these studies have showed that productivity gains are small or not existent and that the effects of information technology and e-commerce have to be often looked upon from a competitive advantage point of view (Barua, Konana, Whinston, & Yin, 2001; Porter & Miller, 1985; Scupola, 2003). Recent research has argued that to increase the business value of electronic commerce to a corporation is important to shift the focus from whether electronic commerce creates value to a company to “how to create value” and “how to optimize such value” (Barua et al., 2001). This can be achieved by exploring complementary relationships between electronic commerce, strategies and value chain activities (Scupola, 2002, 2003). Here this argument is taken further to show the importance of complementary relationships for the business value of e-business.


2018 ◽  
Vol 33 (6) ◽  
pp. 749-767 ◽  
Author(s):  
Seppo Leminen ◽  
Mervi Rajahonka ◽  
Mika Westerlund ◽  
Robert Wendelin

Purpose This study aims to understand their emergence and types of business models in the Internet of Things (IoT) ecosystems. Design/methodology/approach The paper builds upon a systematic literature review of IoT ecosystems and business models to construct a conceptual framework on IoT business models, and uses qualitative research methods to analyze seven industry cases. Findings The study identifies four types of IoT business models: value chain efficiency, industry collaboration, horizontal market and platform. Moreover, it discusses three evolutionary paths of new business model emergence: opening up the ecosystem for industry collaboration, replicating the solution in multiple services and return to closed ecosystem as technology matures. Research limitations/implications Identifying business models in rapidly evolving fields such as the IoT based on a small number of case studies may result in biased findings compared to large-scale surveys and globally distributed samples. However, it provides more thorough interpretations. Practical implications The study provides a framework for analyzing the types and emergence of IoT business models, and forwards the concept of “value design” as an ecosystem business model. Originality/value This paper identifies four archetypical IoT business models based on a novel framework that is independent of any specific industry, and argues that IoT business models follow an evolutionary path from closed to open, and reversely to closed ecosystems, and the value created in the networks of organizations and things will be shareable value rather than exchange value.


2020 ◽  
pp. 406-423
Author(s):  
Chao Lu ◽  
Sijing Liu

It is absolutely not an accidental phenomenon that the development of Internet overlaps with boom of business model research. The emergence of the Internet has greatly promoted the development and study of business models. This paper focuses on exploration of O2O business model innovation by analyzing the main types, evolution and driving factors of Chinese Internet business model, taking Ctrip as the example. From the social prospective, O2O business model improves value and feeling of the customer experience as well as the operational efficiency of the enterprise value chain and utilization efficiency of social resources. This paper has also put forward what Ctrip can enlighten the development of tourism enterprises.


Author(s):  
Petter Gottschalk

As companies expand their use of the Internet from electronic commerce to elec-tronic business, the CIO emerges as the most important executive for performance improvements when selecting business models.


2003 ◽  
Vol 35 (7) ◽  
pp. 1261-1286 ◽  
Author(s):  
Matthew A Zook

This paper develops a case study of the Internet adult industry in order to study the ways in which electronic commerce interacts with geography. Digital products, low barriers to entry, cost differentials, and sensitivity to regulation have created a pervasive and complex geography of models, webmasters, and consumers around the globe. With a series of specially developed datasets on the location of content production, websites, and hosting it is shown that the online adult industry offers people and places outside major metropolitan areas opportunities to become active purveyors of this type of electronic commerce. The roles of these actors, however, are not simply determined by a spaceless logic of cyber-interaction but by histories and economies of the physical places they inhabit. In short, the ‘space of flows’ cannot be understood without reference to the ‘space of places’ to which it connects. This geography also provides a valuable counterpoint to mainstream electronic commerce and highlights the ability of socially marginal and underground interests to use the Internet to form and connect in global networks.


2019 ◽  
Vol 13 (1) ◽  
pp. 1192-1203
Author(s):  
Dragos Tohanean ◽  
Anca Vasilescu

Abstract Information technology has massively transformed the world of business over the past fifty years - first individual functional areas within companies (“first wave”), later increasingly also cross-divisional value-added processes and trade (“second wave”). Those companies that recognized the tremendous economic potential of these upheavals and consistently adapted, profited enormously - many others, however, fell dramatically. At the same time, innovative startups emerged that successfully created and occupied new markets. With the Internet of Things (IoT), the third digital wave is currently rolling up. Their impact will be enormous - both for our everyday lives and for many industries that have so far been largely spared the disruptive power of digital transformation. Accordingly, the challenges facing most companies today are: understanding more complex competition, acquiring new digital technologies, making existing offerings smart, developing new services, networking production, efficiently analyzing vast amounts of data, and building viable organizations to push all this forward. The IoT is a driver for digitization. By analyzing machine data, the use of sensors and the intelligent real-time processing of huge amounts of data in the cloud, new business models are created. With the information gained, companies are able to improve their value chain. However, one of the most difficult issues in this context for many companies is how they can further develop their existing business model or establish successful new business models that will be based on new technologies and IoT. To investigate resulting impacts, we draw on the existing business models and deduct specifics for the Internet of Things. Building on this, in order to reach the aims of the paper the authors will use a descriptive research method and a case study in order to present how new business models work with the IoT.


2020 ◽  
Vol 22 (2) ◽  
pp. 109-133 ◽  
Author(s):  
Jean Paul Simon

Purpose This paper aims to provide a synthesis of the evolution of the global internet markets through an assessment of their economic strength. It is an attempt to describe the various segments of the internet value chain and the evolution of the markets. It aims at briefly summing up the very dynamics of the sector, of the various subsectors while looking at the business models and the market capitalization. Design/methodology/approach The paper is a descriptive paper, presenting market trends, based on desk research and trade press. It is not meant to provide any theoretical contribution but attempting to reconstruct the views from the industry as documented by trade literature. Hence, the paper relies mostly on industry and consultancy data. The paper builds on a database collected by the author over the past 30 years and the selection of the relevant data to document and identify the trends and offer a synthesis of the views of the industry. Findings The paper shows how over the past 30 years the internet has changed dramatically from both a quantitative (reaching more and more users worldwide and witnessing a dramatic growth of all markets) and qualitative (offering an array of innovative products and services enabled by the deployment of new networks) and the availability of new devices. The paper reveals how each technological wave ushered in a series of innovation and new services, boosted the foundation and the growth of pioneering companies. Research limitations/implications Taking into account the lack of official data, the industry data used should be treated as just signals of potential trends, but sufficient to give an overview of the evolution of the global internet markets. Furthermore, detailed studies should complement this descriptive approach. The approach does have obvious methodological and theoretical limits, not providing a robust methodological framework just offering a reconstruction of the trends as documented by the trade publications. However, it concludes highlighting some of the tensions and contradictions. Practical implications The paper closes with a summary of the main transformations and considers some future developments. The paper draws some lessons from some failures and from the strategies of firms. Social implications The paper hints at the way users developed “unique” behaviors using social media, taking advantage of the new opportunities to exchange with others. The paper hints at some regulatory issues and challenges. Originality/value The paper briefly sums up the very dynamics of the global internet market(s). It attempts to characterize some of the main features of their evolution and of the main segments. If offers a comprehensive overview of available data.


Author(s):  
Ran Wei ◽  
Zizhong Zhao

This chapter focuses on digital cable TV networks as a convergent network with telecommunications networks and the Internet that provides broadcasting TV and radio, telecommunications services, and IP-based publishing and e-commerce. The chapter first traces the technological evolution of cable TV, highlighting recent developments in digitalization and convergence. The transformation of cable TV networks from channel operators to unified platforms is discussed. In doing so, the key terms and concepts in cable TV technology are introduced. The technological, political, regulatory, and economic forces behind the convergence are also identified. Furthermore, this chapter examines the value chain and collaborative opportunities among the participants in the digital cable TV revolution. User-centered business models of managing digital cable TV networks are proposed.


Author(s):  
Sushil K. Sharma ◽  
Jatinder N.D. Gupta

The Internet heralded an unprecedented evolution in the transformation of all business and communication. The Internet is growing at an annualized rate of 18% and now has one billion users. Due to this growth, e-commerce will continue to grow in next few years. The United States online population is estimated to be 211 million by 2006 and United States online retail sale are estimated at $112.5 billion for 2006. Jupiter Research predicts that online retail sales are expected to grow from $81 billion in 2005 to $144 billion in 2010 (Jupiter Media Metrix, 2006). E-commerce is defined as buying and selling of information, products, and services via computer networks or internet. Internet and electronic commerce technologies are transforming the entire economy; and changing business models, revenue streams, customer bases, and supply chains. New business models are emerging in every industry of the New Economy. In these emerging models, intangible assets such as relationships, knowledge, people, brands, and systems are taking center stage (Hudson, 2000; Verhoest, Hawkins, & Desruelle, 2003). The relationship and interaction of various stakeholders such as customers, suppliers, strategic partners, agents, or distributors is entirely changed (Sharma & Gupta, 2001, 2003; Sharma, 2005).


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